AIA Engineering Ltd - BUY

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Ravi
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Joined: Tue Dec 27, 2016 3:49 pm
Location: Mumbai

AIA Engineering Ltd - BUY

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AIA Engineering Ltd - BUY

CMP: Rs1,460, 1-Year Target: Rs1,712, Upside: 17.3%

We recommend BUY on the stock due to the following reasons 1) uptick in global mining output led by a rise in commodity prices and <15% penetration of high chrome grinding media in the global mining market that will drive ~18% volume CAGR over FY17E-19E. 2) improving cash flows leading to higher dividend payout. Considering the strong growth prospects, we value the stock at 25x FY19E earnings to arrive at the 12 months target price of Rs 1,712.
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